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Managerial Economics · End Term · 10 May 2026 · January 2026 term · Set 1-2

Question 5: What is the profit maximizing price that BA will charge?

Question 5

+1 markOne correct option

Bharat Airlines (BA) flies only one route: Delhi-Chennai. The demand for each flight is Q=600-2P. BA’s total cost of running each flight includes a fixed cost of 20000 and a variable cost of 90 per passenger.
Based on the above data, answer the given subquestions.

What is the profit maximizing price that BA will charge?

  1. A

    90

  2. B

    195

  3. C

    180

  4. D

    390

Show answer

Correct answer

  • B

    195

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Question 5 of 36 in the IIT Madras BS Managerial Economics (Managerial Economics) End Term paper sat on 10 May 2026, in the January 2026 term (Managerial Economics 06 May 26). It carries 1 mark.

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